Chapter 11 Plan Confirmation: Key Trends from the Last 12 Months
Third Circuit and Delaware decisions reshape cram-down doctrine
Sterling & Ghold's team of experienced practitioners brings decades of specialized expertise to every matter, combining deep industry knowledge with practical commercial judgment. Our lawyers work seamlessly across offices and practice groups to deliver integrated advice that addresses the full scope of our clients' objectives.
The past year has produced a rich body of case law on plan confirmation under Chapter 11, with courts in Delaware and the Third Circuit issuing decisions that refine the standards for "fair and equitable" treatment and the new-value corollary exception. Creditors and debtors alike must grapple with these developments when designing reorganization plans and negotiating plan support agreements.
Sterling & Ghold's team of experienced practitioners brings decades of specialized expertise to every matter, combining deep industry knowledge with practical commercial judgment. Our lawyers work seamlessly across offices and practice groups to deliver integrated advice that addresses the full scope of our clients' objectives.
Particularly significant is the trend toward greater scrutiny of third-party releases in reorganization plans—a practice that has been standard in large Chapter 11 cases but that courts are now limiting following the Supreme Court's ruling in Harrington v. Purdue Pharma. We analyze the implications for restructuring practice and discuss strategies for achieving finality in complex reorganizations.
